Determining optimum solution for the problem

Reference no: EM1322990

Q1) Company produces a product in 2 cities, which are Dallas and Houston. Daily production capacities at Dallas and Houston are 160 and 200, respectively. Products are shipped by air to customers in San Francisco and New York. Customers in each city need 140 units of product per day. Because of deregulation of air fares, company thinks that it may be cheaper to first fly some products to Chicago or Los Angeles and then fly products to their final destinations. Costs of flying one unit of the product between these cities are shown in table below.

			TO
FROM	Dallas	Houston	Chicago	LA	Frisco	NYC
Dallas	0	xxx	9	14	26	29
Houston	xxx	0	16	13	27	26
Chicago	xxx	xxx	0	7	17	18
LA	xxx	xxx	7	0	15	17
Frisco	xxx	xxx	xxx	xxx	0	xxx
NYC	xxx	xxx	xxx	xxx	xxx	0

Company wishes to minimize total cost of daily shipments of required products to its customers.

Write down the goal function and constraints for problem.

Determine the optimum solution for the problem.

Reference no: EM1322990

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